European Securities and Markets Authority Issues Final Guidelines for Position Calculation by Trade Repositories

The European Securities and Markets Authority has published finalized Guidelines on position calculation by trade repositories under the European Market Infrastructure Regulation. ESMA consulted on a draft version of the Guidelines at the end of 2017.

EMIR requires that derivatives contracts are reported to a trade repository by the parties to the contract or by the CCP. Reporting parties do not have to report their trades to the same trade repositories. Instead, trade repositories must take steps to reconcile records among one another.  Trade repositories are required to calculate the positions by class of derivatives and the reporting entity, based on the reports received. Trade repositories are also required to publish aggregate positions by class of derivatives.

ESMA has introduced new Guidelines to provide a framework for trade repositories to provide the relevant calculations in a common format and follow a consistent methodology and timeline. This will promote the provision to relevant authorities with more consistent and harmonized position data in relation to derivatives and higher standards as regards the data that is made available to authorities.

The final Guidelines include high-level principles and specific procedures for trade repositories to follow and require trade repositories to make available position data in four separate reports – a Position Set, Currency Position Set, Collateral Set and Collateral Currency Position Set.

The Guidelines will apply to EU trade repositories registered by ESMA or third-country trade repositories recognized by ESMA from December 3, 2018. There will be an annual assessment of trade repositories' compliance. ESMA has so far registered eight EU trade repositories but has not yet recognized any third-country trade repositories.

View the Guidelines.

View ESMA's list of registered trade repositories.